In-Touch with Keystone : May 2025
Welcome to the May edition of In-Touch
It's hard to believe that we are almost halfway through 2025. As usual, we have had a busy start to the year helping our clients choose the right insurance options and make claims on their policies.
If you ever need to claim on your policy, please contact us at support@keystonefinancial.co.nz or keith@keystonefinancial.co.nz. We will do whatever we can to help you with the process.
In this issue of In-Touch, we have some important information about insurance premium affordability and wills. We also share a delicious, healthy recipe that will hit the spot during the coming cooler months.
Helping our people
Over the past six months, we have helped a number of people process their claims. Some of these have been for serious medical conditions, and some have been significant home and contents claims. Making an insurance claim can be challenging, especially at a potentially difficult time. Annie and I are here to help, should the need arise.
I have also been contacted by several people whose friends or family have faced a serious medical event. This has prompted them to revisit their own insurances and make adjustments, such as increasing their sums insured, or adding new insurances like private medical cover. We are here to help with these insurance reviews.
Make significant long-term savings with level premiums
Most people's life insurance policies have what is known as a 'stepping premium' or 'rate for age premium'. These premiums increase in cost each year, in line with your age. While it is the most affordable premium option at the start of a life insurance policy, it becomes more expensive in the future, potentially requiring alterations to the policy to maintain affordability.
An alternative premium type is available and is being used by more and more people. This is known as a 'level premium'. Level premiums remain fixed for a specified period and don’t increase with age each year. The level premium term might be 10 years, or through to age 65, 70, or 80, depending on the individual's needs.
Level premiums commence at a higher amount when compared to stepping premiums, but over time become less expensive and eventually end up saving a significant amount of accumulated premium cost. Please click HERE to see how this works in more detail.
If you intend to maintain your life cover, trauma cover, or income protection insurance long-term, it's important to consider the benefits of level premiums. Having the cost of your premiums remain the same helps with long-term budgeting, as well as saving thousands or even tens of thousands of dollars in accumulated premium cost.
The importance of having a will
Why make a will?
Having a will is crucial in New Zealand as it ensures your wishes regarding the distribution of your assets are honoured after your passing. Without a will, the laws of intestacy will determine how your estate is divided, which may not align with your personal wishes or the needs of your loved ones. A will allows you to specify who will inherit your property, money, and personal belongings, providing clarity and reducing the likelihood of disputes among family members.
In addition to asset distribution, a will enables you to appoint guardians for any minor children you may have. This is particularly important, as it ensures that your children will be cared for by someone you trust in the event of your death. Without a will, the court will make decisions about guardianship, which may not reflect your preferences or the best interests of your children. By clearly outlining your choices in a legally binding document, you can help secure your children's future.
Another significant aspect of having a will is the ability to minimise tax implications and administrative costs for your heirs. A well-drafted will can facilitate a smoother transition of your estate, making it easier for your executors to manage and distribute your assets. This can ultimately save your family time and money during a difficult time, allowing them to focus on grieving rather than navigating complex legal matters.
Lastly, having a will provides peace of mind, knowing that you have taken the necessary steps to protect your loved ones and your legacy. Life is unpredictable, and securing your wishes in writing can alleviate concerns about what will happen after you're gone. By discussing your plans with a legal professional, you can ensure that your will is valid and reflects your intentions, providing reassurance to both you and your family.
What happens if you don't have a will?
If you die without a will in New Zealand, your assets will be distributed according to the laws of intestacy. This means that the government has predetermined rules that dictate how your estate will be divided among your surviving relatives. This may not reflect your personal wishes, leading to potential disputes among family members who may feel entitled to different portions of your estate. The lack of a will can create complications that can cause emotional distress during an already difficult time for your loved ones.
Moreover, when there is no will, the process of managing and distributing your estate can become more complex and time-consuming. The court will need to appoint an administrator to handle your estate, which can result in additional administrative costs and delays. This can be particularly burdensome for your family, who may have to navigate a lengthy legal process while grieving your loss. Such complications can divert attention away from honouring your memory and focusing on healing.
In the absence of a will, specific assets that you may have intended for certain individuals can end up going to relatives you might not have wished to benefit from your estate. For example, if you have children, the distribution may not consider their future needs or your intentions regarding guardianship. This scenario can lead to unintended beneficiaries receiving assets, which can further exacerbate family tensions and disagreements.
Finally, the lack of a will means you miss the opportunity to express your wishes about funeral arrangements, burial, or cremation preferences. Your family may be left to make difficult decisions without knowing your desires, leading to potential conflicts among relatives. A will provides a clear outline of your wishes, ensuring that your loved ones can respect your preferences even when you are no longer there to voice them.
If you need to implement a will or review an existing will, you can contact a trusted lawyer, or go to an organisation like Footprint.
May's recipe
This is one of my all-time favourite recipes. I have used it with all sorts of protein options, and even as a vege-only dish.
Venison and lentil ragout
Thanks for reading!
Thanks for reading this issue of In-Touch, and I wish you all the very best for the coming months. If you have any questions about something you've read or you'd like some advice on personal insurance, feel free to contact Keystone using the details below.